It has been revealed how much better off millions of Brits will be next year as the Department for Work and Pensions (DWP) shares how much benefits and pensions will be increasing by.
Around 24 million people both in and out of work claim some combination of benefits according to the latest figures, making up over a third of the population.
In April 2026, most benefits will increase by 3.8 per cent, in line with September’s inflation figure.
At the same time, the state pension – paid to nearly 13 million people – will go up by 4.8 per cent. This adheres to the government’s triple-lock guarantee, matching annual earnings growth.
Delivering the new rates to parliament, the work and pensions minister Pat McFadden said: “I have concluded my statutory annual review of state pension and benefit rates under the Social Security Administration Act 1992. The new rates will apply in the tax year 2026 to 2027, with most increases coming into effect from 6 April 2026.”
Here’s everything you need to know.
How much are benefits going up?
Universal credit
In April 2026, all universal credit claimants will receive an above-inflation income boost of around 6.2 per cent to the standard allowance. Here’s how the monthly payment rates are changing:
- Single person over 25: £400.14 to £424.90 (up £24.76)
- Single person under 25: £316.98 to £338.58 (up £21.60)
- Couple with one or both partners over 25: £628.10 to £666.97 (up £38.87)
- Couple both under 25: £497.55 to £528.34 (up £30.79)
Limited capability for work and work-related activity element (LCWRA)
At the same time, the additional monthly payment rate for the health-related element of universal credit for new claimants will be cut by around half. The only exception will be for those who meet the severe conditions criteria or are terminally ill. The rate for existing claimants will also be effectively frozen until 2029.
- Existing LCRWA claimants: £423.27 to £429.80 (up £6.53)
- New LCRWA claimants: £217.26 (down £206.01)
PIP
The personal independence payment (PIP) is paid in two possible components, each at two monthly rates:
- Daily living component, standard: £73.90 to £76.70 (up £2.80)
- Daily living component, enhanced: £110.40 to £114.60 (up £4.20)
- Mobility component, standard: £29.20 to £30.30 (up £1.10)
- Mobility component, enhanced: £77.05 to £80.00 (up £2.95)
Housing benefit
Housing benefit has been replaced by the housing element of universal credit for most people, however, 1.8 million people still claim it.
For social rented tenants, the amount they can receive for both increases broadly in line with their housing costs.
For private renters, the maximum amount for both benefits is set by the local housing allowance (LHA), which the government has frozen again after a temporary reset in 2024. Campaigners have criticised the decision.
Private renters can find out their LHA rate using a tool from the Valuation Office Agency.
Attendance allowance
Attendance allowance is paid at one of two weekly rates:
- Lower rate: £73.90 to £76.70 (up £2.90)
- Higher rate: £110.40 to £114.60 (up £4.20)
Pension credit
Pension credit can be claimed as an individual or a couple. Here are the weekly rates:
- Single: £227.10 to £238.00 (up £10.90)
- Couple: £346.60 to £363.25 (up £16.65)
Carer’s allowance
Carer’s allowance will be increasing from £83.30 a week to £86.45 (up £3.15).
Employment and support allowance
Employment and support allowance (ESA) is one of the legacy benefits that is being migrated to universal credit. People can no longer make a new claim and must move to universal credit when notified by the DWP. However, 1.3 million people are still in receipt of it.
There are two groups an ESA claimant can come under:
- Work-related activity group: £92.05 a week to £95.55 (up £3.50)
- Support group: additional £48.50 a week to £50.35 (up £1.85)
Disability living allowance
Disability living allowance has also been replaced for most people, with one key exception: it remains the main disability benefit for children (under 16).
Similar to PIP, it is paid in two components. However, one is paid at one of three weekly rates, and the other at two:
- Care component, lowest rate: £29.20 to £30.30
- Care component, middle rate: £73.90 to £76.70
- Care component, highest rate: £110.40 to £114.60
- Mobility component, lower rate: £29.20 to 30.30
- Mobility component, higher rate: £77.05 to £80.00
Benefit cap: What you need to know
The benefit cap has been frozen again for 2026-2027, marking the fourth year it has not gone up in line with inflation.
This cap sets a limit on the amount of support claimants can receive from the DWP, even if they are entitled to more (with the exception of some benefits).
The benefit cap level varies depending on location, whether the claimant is single, and if they live with children:
Greater London
- Single adult households without children: £1,413.92 a month
- Couples (with or without children) or single claimants with a child: £2,110.25 a month
Rest of the Great Britain
- Single adult households without children: £1229.42 a month
- Couples (with or without children) or single claimants with a child £1,835.00 a month
The cap counts benefits universal credit, housing benefit, child benefit and more. However, it disregards income from others like PIP, attendance allowance and carer’s allowance.
It is different to the two-child benefit cap (or limit), which the government announced it would scrap at its autumn Budget. This policy prevents parents from claiming the child element of universal credit for any child beyond their second, and will end in April 2026.
How much is the state pension going up?
The state pension will rise by 4.8 per cent from next April in line with annual earnings growth, the government has confirmed. The amounts differ for the new state pension (for those who reached pension age on or after 6 April 2016) and the old state pension (for all other pensioners):
- New state pension: £230.25 a week to £241.05 (up £10.80)
- Old state pension: £176.45 a week to £184.90 (up £8.45).
In a year, this will make the old state pension worth £9,614.8, and the new state pension worth £12,534.60.
This is just over £34 shy of the income tax personal threshold, prompting concern from many that the value of the state pension will begin to erode when it inevitably passes this amount in 2027. This threshold was also frozen at the autumn Budget until April 2031, meaning the state pension will only continue to grow further beyond it.
However, speaking to money expert Martin Lewis after the fiscal event, chancellor Rachel Reeves pledged that no one receiving only the state pension will be made to pay tax on it.
